De Beers Plans Sale of Namibia Diamond Mine

RAPAPORT... De Beers' joint venture with the Namibian government is seekinga buyer for its Elizabeth Bay operation, as the miner diverts resources to its marineprojects. Namdeb closed ElizabethBay between 2009 and 2011, when it revived it and gave it a projected lifespanof four years. While the mine is expected to continue to produce diamonds through 2019, itsoutput does not meet De Beers' needs. The company last year said it planned to close the project, but is now looking for a lower-costoperator that can continue running the asset indefinitely. "Elizabeth Bay mine continues to play an important role inthe development of Namibia's diamond industry, so we have not taken thisdecision lightly," Riaan Burger, CEO of Namdeb, said Friday. "We are constantlyreviewing new mining opportunities. As this mine nears the end of its currentlife, we are focused on finding a buyer that can sustain operations beyond2019, protect jobs and contribute sustainably to the Namibian economy." The mine, located near the town of L? 1/4 deritz on thesouthwest coast of Namibia, currently employs around 160 people, and yieldedapproximately 200,000 carats in 2017. In October, Namdeb, a 50:50 partnership between De Beers and the government, revealed plans to close ElizabethBay, along with the Daberas, Sendelingsdrif and Southern Coastal mines. DeBeers intends to focus on Debmarine Namibia, which searches fordiamonds offshore. In 2017, production at its marine-based assets jumped by 18%, growingthree times faster than at land-based operations. De Beers has not disclosed whether it has changed its plans forthe other three mines.